Many NRIs that work abroad, dream of investing in a residential or commercial property in their homeland. The options are aplenty. But care needs to be taken to choose the right project that will give assured return on investment. The Pune real estate scenario is looking extremely upbeat right now, and this has made it an attractive investment destination for not just resident Indians, but also for NRIs.
How can NRIs invest in real estate in Pune?
To invest in the Pune property market as an NRI, you need to prove your NRI status. If you do not have enough savings for an upfront payment, you also have the option of taking a loan. It has now become extremely convenient and easy for expat Indians to take a loan from a bank or any other financial institution.
However, before you invest in Pune real estate, you would need to be aware of certain important aspects. In this article, we shall discuss certain home loan-specific details. These are as follows:
- As an NRI, you can invest in certain specific types of properties only. If you wish to take a home loan on a residential property, you can avail a loan on a ready-possession home, an under-construction property, or even a non-agricultural (NA) plot.
- There is a certain limit to the maximum amount of loan that you can avail. This is, of course, based on your current income and your repayment potential. In typical cases, you can expect around 80 percent of the total value of your home to be financed by a bank or financial institution.
- Your gross monthly income determines the maximum amount of loan you can avail. In most cases, the loan can be up to 35 times your gross monthly income.
- Your educational qualifications also have a direct impact on your home loan. For instance, there are a number of financial institutions that sanction loans only to those NRIs who have copleted their graduate-level education.
- Usually, home loans for NRIs are associated with a high risk factor. Hence, you would notice that the interest rates on these loans are higher than other loans for resident Indians. Expect the bank to give you repayment tenure of up to 15 years, or more at the discretion of the bank.
- Today, with most banks having branches at global locations, documentation for an NRI home loan has become rather simple. The most important documents to submit while investing in real estate in Pune would be: copies of your passport, visa, work permit, your academic documents, employment contract, salary slips or certificate, your NRE account statement, other bank statements, and a work experience certificate from your employer among other things.
When you purchase property from a reputable Pune real estate developer, you can expect their customer service department to assist you in completing the formalities.